Where will binding arbitration for Cool Binz disputes take place, if Cool Binz chooses that option?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
t this internal dispute resolution procedure before you may bring your dispute before a third party. This agreement to first attempt resolution of disputes internally shall survive termination or expiration of this Agreement.
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- Arbitration. At our option, all claims or disputes between us, our shareholders, officers, directors, agents and employees and you, arising out of, or in any way relating to, this Agreement or any other agreement by and between you and us or our affiliates, or any of the parties' respective rights and obligations arising from such agreement, or the operation of the COOL BINZ Business which are not first resolved through the internal dispute resolution procedure set forth in Section 15.F.1 above, must be submitted to binding arbitration in Ann Arbor, Michigan under the auspices of the American Arbitration Association ("AAA"), in accordance with AAA's Commercial Arbitration Rules then in effect, with an arbitrator with at least five (5) years of franchise law experience. We may specifically enforce our rights to arbitration. Each party shall bear its own cost of arbitration and you and we shall share costs of the arbitrator equally. This agreement to arbitrate shall survive any termination or expiration of this Agreement.
- a. Notwithstanding the foregoing, we shall not be required to arbitrate, and may initiate litigation in court, in accordance with the procedure set forth in Section 15 F.3, any controversy, dispute, or claim as set forth in this Section 15.F.2 if such controversy, dispute, or claim concerns an allegation that you have violated (or threaten to violate, or pose an imminent risk of violating):
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- Any federally protected intellectual property rights in the Marks, the System, trade secrets, or Confidential Information;
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- Any claims pertaining to or arising out of any warranty issue;
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Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, if Cool Binz elects to pursue binding arbitration, the proceedings will be held in Ann Arbor, Michigan. This arbitration will occur under the rules of the American Arbitration Association (AAA), utilizing its Commercial Arbitration Rules. The selected arbitrator must possess a minimum of five years of experience in franchise law.
This clause dictates that any unresolved disputes between Cool Binz and its franchisees, including their shareholders, officers, directors, agents, and employees, must undergo binding arbitration. This encompasses disputes related to the Franchise Agreement, any other agreements between the parties, or the operation of the Cool Binz business. However, this is only if the internal dispute resolution procedure fails to resolve the issue first.
It's important to note that Cool Binz retains the option to enforce its right to arbitration. Both parties are responsible for their own arbitration costs, while the costs of the arbitrator will be equally shared between Cool Binz and the franchisee. This agreement to arbitrate remains in effect even after the termination or expiration of the Franchise Agreement. However, Cool Binz is not required to arbitrate certain disputes, such as those involving intellectual property rights, warranty issues, restrictive covenants, fraud, misrepresentation, insolvency, or claims where the alleged damages are less than $50,000, and may instead initiate litigation in court.